New Target CEO plans $3B push after layoffs
Target’s new CEO, longtime executive Michael Fiddelke, says the Minneapolis‑based retailer will pour $2 billion into opening 30 new stores and remodeling 130 more, plus another $1 billion into operations, worker training and artificial intelligence, as it tries to reverse slumping sales and boycotts. In an interview with the Associated Press, Fiddelke framed the campaign as a bid to “regain the public’s trust” and reclaim Target’s edge in style and fashion after a year of sliding revenue, holiday price‑cutting and the announcement that 1,800 corporate positions would be eliminated, including 1,000 layoffs. The plan includes rolling out “Target Beauty Studio” sections in 600 stores starting this fall as the Ulta Beauty shop‑in‑shop partnership ends in August 2025, and sending Target’s fashion buyers back into the field to draw on outside markets for new ideas. Fiddelke also tried to steady the company’s political footing after backlash over cutbacks to DEI programs, refusal to publicly oppose ICE’s Metro Surge, and tariff‑driven price pressures, saying the company will focus on “controlling what we can control” while remaining a “productive partner” in the 2,000 communities where it operates. For the Twin Cities, where Target remains a cornerstone downtown employer even after recent job cuts, the strategy is a high‑stakes test of whether new leadership can stabilize one of the metro’s few remaining blue‑chip headquarters as consumers grow more price‑sensitive and politically polarized.
📌 Key Facts
- New CEO Michael Fiddelke took over Feb. 1, 2026, after 23 years at Target as CFO and COO.
- Target plans to invest $2 billion to open 30 new stores and remodel 130 existing locations, plus $1 billion in operations, labor training and AI.
- The Ulta Beauty–Target partnership ends in August 2025; Target Beauty Studio will launch in 600 stores starting this fall.
- Target recently announced elimination of 1,800 corporate positions (1,000 layoffs and 800 unfilled roles), with many employees awaiting notification.
- Fiddelke acknowledged boycotts and political backlash over DEI rollbacks and non‑opposition to ICE as factors in slumping sales, but says Target aims to 'regain public trust' and grow net sales each quarter this year.
📊 Relevant Data
Target announced in January 2025 that it would conclude its DEI goals, end the Racial Equity Action and Change (REACH) initiative, and restructure its Supplier Diversity program, citing an evolving external landscape.
Target's workforce in the fiscal year ending early 2025 was 43% White, 31% Hispanic/Latino, 15% Black, and 5% Asian.
Target's DEI rollback in 2025 triggered a boycott lasting over 200 days, resulting in a $20 billion market value loss and a significant decline in foot traffic.
Target Faces Boycott: 200 Days Without DEI, Financial Impact Grows — Investopedia
Operation Metro Surge in Minnesota, starting in late 2025, involved a surge of immigration agents leading to thousands of arrests, tense protests, and three shootings, including the deaths of two US citizens.
Trump Administration to End Surge of Immigration Agents in Minnesota — The New York Times
Minnesota's foreign-born population grew to nearly 490,000 residents in 2023, comprising 8.6% of the state's population, up from previous years due to immigration.
The Growth and Impact of Minnesota's Foreign-Born Workforce — Minnesota Department of Employment and Economic Development
The Somali immigrant community in Minnesota faces socioeconomic disparities, with lower median household incomes and higher poverty rates compared to the state average, partly due to challenges in long-term integration following federal refugee resettlement.
Somali Immigrants in Minnesota — Center for Immigration Studies
Target forecasted meaningful year-over-year profit pressure in 2025 due to tariffs and other costs, with potential price hikes as a last resort to offset massive costs.
How tariffs could impact Target in 2025 — FOX 9 Minneapolis-St. Paul
The 2025 tariffs have raised an estimated $194.8 billion in inflation-adjusted customs revenue, increasing the average tariff rate on U.S. imports from 2.6% to 13%.
Tracking the Economic Effects of Tariffs — The Budget Lab at Yale
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